Management

Management

Goals,
Business Management Profit,
Organization And
Social
Responsibility

• Helps Organization Achieve its goal

• Get things done
• Definition: the effective (result oriented) motivation of man and the efficient (cost
oriented) use of other resources for the attainment of predetermined objective.
• - the process of working with people and resources to accomplish organizational goal.
 Challenges of Business Org
• Competition
• Dynamism – dynamic customer &
environment
• Global Orientation
• Diversity – age, tribe, language,
• Changing Workgroup
 Concept of Management

• Old Concept – Getting things • Areas of Management

done through people. – General
– Financial
• New Concept - Getting things – Personnel / Human
done with people. Resources
– Management is an Art (Doing) – Production & Operation
and A Science (Knowing)
– Views of Management • Levels of Management
• Management by Participation – Top (President & VP)
• Management by Motivation
– Middle (AVP, SM)
• Management by Exception
• Management by Delegation – First (M)
• Management by System
 Manager v.s. Entrepreneur
• Manager – someone who manage the business.
• Entrepreneur – someone who manages his own
business
– Someone who start the business
– Clear with his ambition, vision, or dream
– Love what he does (passionate)
– Determine, self-driven,persistent.
• Entrepreneurship – Is about nurturing one spirit,
discovering and mastery of self, the quest for a
vision greater than that of self.
• Note: Not all manager are entrepreneur
 Manager
• Function (Sequential) – Job Competence and Good
– Planning Judgment
– Organizing – Assertive
– Staffing – Possess Ego Drive
– Leading – Risk Taker and Innovative
– Controlling – Opportunity Seeker
• – Urgent
Function (Continuous)
– Empathetic
– Communicating
– Committed
– Problem Identification
– Objective
– Decision Making
– Love for Feedback
• Traits – Money Mania
– Analytical Ability
– Fast
– Social Maturity
– Character & Integrity
– Inner Motivation and Achievement
Drive – Think Global
– Self Confidence – Customer Centric
– Self Denial, Hardworking, & – Welcomes Change
Honest – Energetic & Sparks Others
– Infectious Enthusiasm
 Manager…
• Skills • Resources (M)
– Technical – Human Resources (Man)
– Human – Finances (Money)
– Conceptual – Equipment, land, building
• Qualities (Machine)
– MAN is a Human Being – Tools, Technology, Process
(Methods)
– AGE matured, experienced,
educated – Supplies (Materials)
– MENT able to apply what he – Time (Minutes)
knows – Customer (Market)
• Role – Information (Message)
– Figurehead – Network & People
– Leader • Tactics
– Liaison – Never Wound the King
– Monitor – Avoid Battle
– Disseminator – Choose your battleground
– Disturbance Handler – Be present in the battle
– Resource Allocator
– Negotiator
 Manager…
• 4Es of • Problem Manager
– Effective – Significantly decrease
– Efficient production and staff morale
– Enlightened – Contribute greatly to cost
– increase
Excellent
– Make the company an
• Characteristic of 4E unpleasant place
– MBA mngnt by Action – Create division among his
– MBUC mngnt by using team instead of harmony
common sense – Never listen to their input
– MBEP mngnt by – Achieve personal goals
empowering people
– Ignore and overlook other
– MBSL mngnt by Smiling & people
Loving
 Type of Manager

Competent CH CE
Ideal - try to upward delegate as much Encourage him to focus on co-workers
as possible and redirect his evil intentions

Incompetent IH IE
Keep him nearby to entertain you. Help Leave him
him as much as possible.

Harmless Evil
Business Environment
Socio-Cultural

Customer

Em
tor

pl
oy
eti

ee
mp
Technology

Economics
Co

Suppliers
ORGANIZATION
Co
mm

try
un

s
du
ity

Government I n

Political, Legal, Gov.

 History of Management
• Early Management • Classical School of Thought
– Family (Adam) – Oldest & Promotes
– Tribe (Jacob) productivity of workers
– Formalized Political Unit – Contributions:
(Egyptians) • Scientific – management is a
– Note: Management was based science and can be learned
– James Taylor – Father of
on trial and error, with little or scientific management
no theory and no sharing of • Bureaucratic
ideas – Gantt Chart, Time & Motion
– Industrial revolution (1700- Study (Frank Gilbreth
1785) – Pay based on output, Bonus
System.
– New Industrial Era begin in the – Better Working Condition
US – A new way to study • Administrative
management started with US$ – Leadership
100 by Joseph Wharton – Henri Fayol (14 Principle
 14 Principle of Management
(DID U CARE SOUSSE)
1. Division of work: Division of work and specialization produces more and better work with the same effort.
2. Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and
initiative are desired at all levels of the organizational ladder.
3. Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires
managers to apply sanctions whenever violations become apparent.
4. Unity of command: An employee should receive orders from only one superior.
5. Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization
varies according to the dynamics of each organization.
6. Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager
has official authority because of her position, as well as personal authority based on individual personality,
intelligence, and experience. Authority creates responsibility.
7. Remuneration of personnel: Salaries - the price of services rendered by employees - should be fair and provide
satisfaction both to the employee and employer.
8. Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment
should be considered when dealing with employees.
9. Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.
10. Order: Organizational order for materials and personnel is essential. The right materials and the right employees
are necessary for each organizational function and activity.
11. Unity of direction: Organizational activities must have one central authority and one plan of action.
12. Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is
needed.
13. Subordination of individual interest to general interest: The interests of one employee or group of employees
are subordinate to the interests and goals of the organization.
14. Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-
face verbal communication encourages teamwork.
 Behavioral School of Thought
• Focus on Man
• Manager must:
– Understand human behavior
– Identify social need of people
• Individual and group need
– Understand the theory x or y by Douglas McGregor
• X – assumes worst about people
• Y – assumes best about people
– Pleasing work atmosphere, as presented by Hawthorne
contributed to the positive behavior of worker toward works.
• Rest Period, Shorter Working Days, Incentives, supervision, friendly
on group member, help each other.
– Establish and maintain a communication system
 Other School of Thought
• Quantitative School of Thought
– Focus on exact basis – must have concrete
evidence to make decision
• System School of Thought
– Composed of interrelated parts
• Contingency School of Thought
– Based on the current situation
• Modern School of Thought
– 5s, QU, TPM, JIT, TQM, Kaizen
 5s
5S is a reference to five Japanese words that describe standardized cleanup:
1. Seiri : tidiness, organization. Refers to the practice of sorting through all the tools,
materials, etc., in the work area and keeping only essential items. Everything else is
stored or discarded. This leads to fewer hazards and less clutter to interfere with
productive work.
2. Seiton : orderliness. Focuses on the need for an orderly workplace. Tools,
equipment, and materials must be systematically arranged for the easiest and most
efficient access. There must be a place for everything, and everything must be in its
place.
3. Seiso : cleanliness. Indicates the need to keep the workplace clean as well as neat.
Cleaning in Japanese companies is a daily activity. At the end of each shift, the work
area is cleaned up and everything is restored to its place.
4. Seiketsu : standards. Allows for control and consistency. Basic housekeeping
standards apply everywhere in the facility. Everyone knows exactly what his or her
responsibilities are. House keeping duties are part of regular work routines.
5. Shitsuke : sustaining discipline. Refers to maintaining standards and keeping the
facility in safe and efficient order day after day, year after year.